The trend in new dwelling approvals in Townsville has been consistently declining since the middle of 2017, trailing away to historic low levels since records began in 1991. As at December 2018, the trend number of new houses being approved each month had reduced to just 26.
This slow rate of new housing approvals is reflected in the vacant land market that has seen the number of lots being sold and settled by developers slow to a trickle. As at December 2018, the trend number of land sales per month was just 11, which represents a whopping 84.7 per cent reduction in the trend volume of sales over the five year period since April 2013.
There is currently a variety of land sizes available in locations across the Townsville region with entry level pricing from low $100,000 for a small lot. Building costs range depending on size and quality of fitout with a typical first home buyer entry product including land generally priced from the mid to high $300,000s. Second home buyers are typically in the $450,000 to $500,000 price bracket for entry level product including land.
Demand and confidence in the new housing sector is currently very slow with no drivers in sight to halt this slowdown. With the median sale price in the residential market soft, the economics of building a new home versus buying an established home is proving difficult in some cases to stack up.
If you would like an assessment on your Townsville home against the current market contact one of our agents – Free Market Appraisal